Metals Exploration Regulatory News (MTL)

30 Mar 2007 07:02

Metals Exploration PLC30 March 2007 METALS EXPLORATION PLC DRILLING IN THE NORTHERN SECTOR OF THE RUNRUNO RESOURCE RETURNS HIGHER GRADEMINERALISATION IN A NEWLY RECOGNISED STRUCTURE * EXPLORATION PERMIT APPLICATIONS LODGED OVER THREE PROPERTIES IN LUZON, PHILIPPINES 30 March 2007 The Board of Metals Exploration PLC ("the Company") is pleased to announce thatthe Company received encouraging assay results from a drill hole in thenorthern-most part of the Runruno gold-molybdenum deposit. The Company has also lodged three Applications for Exploration Permits ("EPA")with the Regional offices of the Mines & Geosciences Bureau ("MGB") in NorthernLuzon, Philippines. The three properties, namely Dupax, Sulong and Capas allcomprise gold +/- copper-zinc mineralisation identified by previous explorers,and offer the potential for the delineation of economically viable deposits ofgold and/or base metals. RUNRUNO PROJECT Drill hole MXD055 was drilled in the northern part of the 2 million ounceresource area to test for vertical structures identified towards the end of lastyear in field mapping. The key gold results from drill hole MXD055 are summarised below: Drill-hole Intercept (metres) AuID From to Width g/t MXD055 0.00 2.10 2.10 1.96 3.00 4.00 1.00 8.10 7.00 13.50 6.50 1.49 18.10 20.50 2.40 1.40 21.15 24.50 3.35 1.21 83.30 84.30 1.00 4.81 86.20 91.30 5.10 9.05 total combined intercept = 21.45 metres @ 3.74g/t gold Notes: 1. Drillholes prefixed with MXD consist of diamond drill core with a minimum core diameter size of HQ3 (61mm). 2. Reporting of the above composited intercepts was determined by applying an upper and lower boundary defined by a low grade cut-off of 0.7g/t Au. Some composited intercepts include single metre, internal intercept grades of less than 0.7g/t Au. Isolated single metre intercepts are not reported unless considered to be significant. No high grade cut-off has been applied to the individual gold assays. 3. Molybdenum assays are pending for this drill hole. The mineralisation encountered in the drill hole is considered to be significantin that it indicates that there is more than one structure within the northernpart of the deposit hosting gold-molybdenum mineralisation. These results helpto ratify the Company's geological model and enhance the potential for similarmineralisation elsewhere in the Runruno project area. EXPLORATION PERMIT APPLICATIONS DUPAX EPA The Dupax EPA comprises two separate blocks - Dupax (5,042 hectares) and Solano(3,814 hectares) - totaling some 8,856 hectares in area. The EPA is located inNueva Vizcaya Province, some 200km north of Manila. The Dupax block contains a previously identified and partially open pit minedzinc-copper-gold massive sulphide deposit. The deposit occurs as a massivesulphide body in agglomerate and disseminated sulphide in silicified sediments,predominantly underlain by marine clastics intercalated with pillow basalts andpyroclastics. This package is intruded by dikes and sills of intermediate tobasic composition. Major structures strike northwest and grossly conform to the trend of themineralized zones. Principal ore minerals are sphalerite, chalcopyrite,tennantite and secondary covellite. The best grades obtained from sampling ofthe outcrop are 45.7% zinc, 3.89% copper and 4g/t gold. Previous work focused on defining a restricted lens of high-grade, directshipping massive sulphide zinc-copper ore which was partially mined out by openpit methods (ca 1960/70s). Previous production records are currently unknown. Gossans and manganese mineralisation occurs along strike of the main faultstructure and show potential for additional massive sulphide deposits in thearea. Geological logs of tunnels excavated during the 1960s(?) describe aweathered and oxidized profile of 12 meters thickness, which would make surfaceprospecting for massive sulphides more difficult. Gossanous material at surfaceis the best indicator of sulphide mineralisation at depth. The Dupax block is a poorly explored area which hosts economic grades of massivesulphide Zinc-Copper-Gold mineralization. There appears to be an obviousstructural control on the mineralization. Little is known about the Solano block. Once the EPA has been granted, the Company intends to carry out detailedgeological mapping, soil geochemistry, followed by geophysical surveys todetermine favourable areas for drill testing. SULONG EPA The Sulong EPA covers some 6,963 hectares in area and is situated to the east ofSolano, Nueva Vizcaya Province, approximately 220km north of Manila. The area has previously been mined for manganese (ca 1970s) which, isinterpreted as being the oxidised portion of an extensive vein-fault system,although there is little evidence of shipment of manganese ore. During the early 1990s Climax conducted a regional geochemistry survey of thedistrict, including the Sulong area. During the late 1990s, Placer Pacific Exploration Phils., Inc. (a subsidiary ofPlacer Dome), carried out stream sediment geochemistry and rock sampling of theSulong area. Sampling of outcrop within the EPA area returned assay grades up to0.64g/t gold. The Company believes that the area comprises a large gold-bearing vein-faultsystem and potential for porphyry copper mineralisation. Once the EPA has beengranted, the Company intends to carry out detailed geological mapping, soilgeochemistry and geophysical surveys to determine favourable areas for drilltesting. CAPAS EPA The Capas EPA covers some 3,564 hectares in area and is situated approximately20km southwest of Tarlac City, Tarlac Province, some 100km northwest of Manila. The Capas EPA area had been investigated by several explorers since 1987 when analluvial panning "Gold Rush' saw approximately 2,000 hand panners working in thearea recovering alluvial nuggets and gold dust. It has been estimated thatapproximately 30 kilos of gold was realized from this small scale hand mining. In 1987, West Gold Exploration Inc. ("WGE") conducted a geochemical samplingprogram over the area consisting of pan concentrate sampling of the variousdrainages in the area. A large area of anomalous gold values was delineated onthe property. In 1988-89, BHP Engineering ("BHPE") carried out an exploration programconsisting of surface geological mapping, soil, float and outcrop sampling,tunneling and channel sampling, resulting in the identification of a prospectivetarget area known locally as the Manganese Area. This area contains significantsurface alteration and anomalous gold values. In 1990, BHPE carried out a program of diamond core drilling in the ManganeseArea. Four vertical diamond drill holes, DDH-1 to DDH-4, were completed for atotal of 300 metres. In 1993, WGE undertook shallow surface drilling (up to 3 meters depth) east ofthe Manganese Area to test the extent of the gold anomaly identified indrill-hole DDH-4. A surface area of 25 metres by 100 metres was defined withanomalous gold grades. The area is underlain by three distinct volcano-sedimentary units namely:basalt, argillite and lithic tuff; indurated tuffaceous sediments, and youngerlargely undeformed sediments. These units are intruded by a number of quartzdiorite bodies. Gold mineralization is hosted by weakly altered andesite and DDH-4 intersectedgold mineralisation averaging >1g/t gold over 20 metres starting from 4 metresbelow surface. The Company believes that the property has the potential for the delineation ofa shallow gold resource, which may be amenable to heap-leaching. Once the EPA has been granted, the Company intends to carry out detailed mappingof structures in the Manganese Area to determine structural controls to themineralization at Capas. A programme of shallow RC drilling will then be plannedto identify a shallow gold resource which may be amenable to heap leaching. QUALIFIED/COMPETENT PERSONS Gary Powell (a Director of the Company) has been involved in the mining andexploration industry for more than 24 years. He has a Bachelor of AppliedScience degree in geology and is a member of the Australasian Institute ofMining and Metallurgy and the Australasian Institute of Geoscientists. He hascompiled, read and approved the technical disclosure in this regulatoryannouncement. The information in the report to which this statement is attached that relatesto Exploration Results, Mineral Resources or Ore Reserves is based oninformation compiled by Mr Brian Lueck, who is a Member of the Association ofProfessional Engineers and Geoscientists of British Columbia, Canada. Mr. BrianLueck is employed as a technical consultant to the Company and has sufficientexperience which is relevant to the style of mineralisation and type of depositunder consideration and to the activity which he is undertaking to qualify as aCompetent Person as defined in the 2004 Edition of the 'Australasian Code forReporting of Exploration Results, Mineral Resources and Ore Reserves' (JORCCode). Mr. Brian Lueck consents to the inclusion in the report of the mattersbased on his information in the form and context in which it appears. NEWLY DESIGNED WEBSITE A newly designed website is now up and running for the Company at: www.metalsexploration.com ENQUIRIES: Jonathan Beardsworth, CEO Metals Exploration +44 20 7927 6690Jonathan Anderson, Investor Relations +44 7863 167070Adrian Hadden , Collins Stewart Europe Limited +44 20 7523 8350Simon Rothschild, Marc Cohen, Bankside Consultants +44 20 7367 8888 This information is provided by RNS The company news service from the London Stock Exchange